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Zero Dep vs. Engine Protect: Choosing Your Car Insurance Add-on
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Home / Car Insurance / Zero Dep vs. Engine Protect: Choosing Your Car Insurance Add-on
You have just bought your dream car and want to ensure it stays in excellent condition. That is where car insurance and add-ons come into play. A car insurance policy is an agreement between you and an insurer, where you pay a premium in return for financial coverage against damages due to accidents or other incidents.
While comprehensive insurance typically covers vehicle damage, property loss, and medical expenses, it may not include everything. Add-ons like zero depreciation and engine protection provide extra security. This blog explores the key difference between zero dep and engine protection add-ons to help you choose the one that best fits your needs.
Zero Depreciation Add-on Cover
Depreciation refers to the decreased value of a car due to time, wear, and tear. A zero depreciation cover will ensure that during a claim settlement, you do not have to pay any deductibles. The claim will pay for the full replacement of the car parts. So, if you have bought a new car, buying a zero depreciation add-on makes perfect sense since it will reduce any extra out-of-pocket expenses.
Benefits of Zero Depreciation Cover
Here are some benefits of a zero depreciation cover:
It covers bumps and small dents that might damage expensive spare parts
Provides 360° coverage
It bridges the gap between actual car damage costs and claim settlement amounts
For new drivers, the chances of accidents are high; for them, it is a smart choice
Financial protection for expensive car parts is available at an affordable premium
Exclusions of Zero Depreciation Cover
Exclusions of zero depreciation cover are:
The coverage is not valid for cars more than 5 years old
It does not cover tubes and tire replacement unless specified otherwise in the policy
An unfortunate accident resulted in total car loss
If an accident occurs while a policyholder is driving without a license
It does not cover mechanical breakdown and engine damage
The zero dep cover does not include consumables like nuts, bolts, screws and gear oil
Engine Protection Add-on Cover
It is an addition to a regular comprehensive car insurance plan with an extra set of unique benefits and features. Owning this cover helps to get reimbursement for replacing or repairing damaged engine parts.
Since most insurance companies do not provide coverage for engine damage in their regular comprehensive insurance policies, engine protection remains susceptible. Usually, the cost of an engine protection add-on is only 2% of the car's value. So, it seems wise to invest beforehand to save on extended expenses in the future.
Benefits of Engine Protection Cover
Check out the benefits of an engine protection cover:
Financial expenses are covered if water goes inside the engine
If there is damage to the engine because of lubricating oil leakage
Coverage for damage to the engine’s hydrostatic lock during monsoons or floods
Damage to the gearbox, connecting rods, and pistons is covered
Exclusions of Engine Protection Cover
The following are not covered under the engine protection add-on:
Owning a comprehensive insurance policy is a must to purchase an engine protection cover
This cover does not include cars more than 5 years old
Insurance companies only cover 2 claims per policy year for engine protection
If a car has been driven after an accident and faces consequential damage, this cover will not work
Difference Between Zero Dep and Engine Protection
Zero depreciation and engine protection are valuable add-on covers for car insurance. While both help reduce out-of-pocket expenses in case of damage, they serve different purposes and offer distinct benefits.
Let us find out the differences in detail from the following table:
Features | Zero Depreciation | Engine Protect |
|---|---|---|
Premium | Higher, but the depreciation charges get nullified | Lesser compared to a car with a zero depreciation cover premium |
Charges Covered | Full Replacement charges for all car parts | Charges covered for only engine damage |
Suitability for new drivers | Suitable for new drivers | Only the engine protection add-on is not sufficient for new drivers |
Coverage | Covers all minor damages, like small dents and bumps | Covers physical damage to the engine, like the piston and gearbox |
Out-of-pocket expenses | Reduces out-of-pocket expenses for everything | Reduces out-of-pocket expenses only for engines |
Number of Claims | 2 claims per year | 2 claims per year |
Final Words
Depending on your budget and the age of your car, you can decide whether to purchase a zero-depreciation or an engine protection cover. If you are buying a new car and living in an accident-prone zone, buying a zero-depreciation add-on will be wise. In contrast, if you are worried about the engine condition of your pre-purchased car, you could protect it with an engine protection cover by adding a little more to your comprehensive car insurance premium.
Frequently Asked Questions
FAQS
Is engine protection included in zero depreciation cover?
No, engine protection does not come under a standard zero depreciation add-on cover. It primarily covers repairing and replacing different car body parts without any kind of depreciation charges.
Can I buy a zero depreciation cover for my old car?
Although it is highly recommended to purchase a zero depreciation cover as soon as you purchase a new car, you can buy it until your car reaches the 5 years mark.
Which one is better: zero depreciation or engine protection cover?
Depending on how old your car is, location and driving intensity, you can choose. A zero depreciation cover is better if you are a new driver and want to protect your car from injuries. In contrast, if you live in a flood prone area, it is better to opt for engine protection cover.
Does IDV matter with zero depreciation?
No, zero depreciation add-on cover does not have any effect on IDV (Insured Declared Value). Typically, IDV is based on a car's market value and age.
Is zero depreciation cover better than comprehensive cover?
When it comes to new cars, zero depreciation is better than comprehensive car insurance. Zero depreciation helps a policyholder avoid all kinds of out-of-pocket charges during repairs after an accident.
Nikhila PS
Senior Content Editor
Nikhila is a content creator with 6+ years in EdTech and motor insurance, turning complex policies into clear, engaging content. She enjoys exploring digital trends, social media, and art while planning her next short escape.
Rekhit Singh Kaushal
Senior Director - Motor Underwriting
Rekhit Singh Kaushal is Senior Director at ACKO, a leading digital motor insurance provider in India. With deep expertise in insurance strategy and innovation, he brings trusted insights on car and bike insurance to help drivers stay protected.
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